On October 26, DEG Fund under the German Reconstruction Bank (Kreditanstalt für Wiederaufbau – KfW) completed the capital funding procedure worth 17.5 million USD for Nova Consumer, a member of the NovaGroup ecosystem. This capital funding will be used to focus on developing the farm system and expanding production and business as Nova Consumer had planned since the beginning of the year.
With the funding of 17.5 million USD in this round, the total funding that DEG Fund has cooperated with Nova Consumer has reached nearly 50 million USD since 2016. This capital funding from the DEG Fund is used to support Nova Consumer to continue to develop its strengths in the agricultural sector, while affirming DEG/KfW's sustainable development strategy in Vietnam, extending the list of leading enterprises in Vietnam that DEG has been accompanying.
Part of this funding is for the expansion of the number of pig farms currently operated by Anova Farm, including pig breeding farms with world-class high-quality pig breeding sources from Denmark and Canada, ensuring the supply of pork for large-scale farms in the future.
Nova Consumer has just received capital funding worth 17.5 million USD from the DEG Fund of the German Reconstruction Bank on October 26 to focus on developing the farm sector. (Image: Anova Farm's pig farm belongs to Nova Consumer)
By cooperating with DEG Fund, Nova Consumer commits to accompany DEG to achieve the highest E&S standards (environmental risk management and sustainable development standards) to limit risks in the context of epidemics as well as other unpredictable developments that the agricultural sector may encounter. At the same time, Nova Consumer ensures that farms, factories, and production lines always meet international standards under the advice and support of a partner from the Federal Republic of Germany.
Promoting the expansion of the farm system is also a premise for Nova Consumer to accelerate the development of other business areas such as breeding animals, animal feed, vaccines, veterinary medicine and consumer goods. The capacity of the animal feed factory is maximized when output demand is guaranteed. In addition, the consumer goods industry also benefits in the context of fluctuating raw material costs in the market due to the presence of a livestock farm system as an input source.
Expanding consumer goods groups, moving towards the 3F value chain (Feed – Farm – Food) helps Nova Consumer to be self-sufficient in input factors, close the production chain and avoid external impacts, control the origin and quality of livestock inputs, and ensure the highest output quality. Due to the closed production model, Nova Consumer can maximize the company's profit margin, while creating leverage and development momentum for other business segments.
After completing M&A deals in 2022, Nova Consumer has owned a fairly comprehensive product portfolio for both agriculture and consumer goods with a system of more than 80,000 domestic distribution points, exporting to more than 27 countries and a production line system that meets international quality management standards such as FSSC 22000:2013, ISO 22000:2005...
Nova Consumer continues to promote the consumer goods sector, launching many new products. (Image: Nova Consumer's beverage products at Nova Market)
According to the business results report for the first 9 months of the year, Nova Consumer's revenue reached VND 3,450 billion with a net profit of VND 249 billion, in line with the plan approved at the 2022 General Meeting of Shareholders. Of which, the animal feed segment achieved revenue of VND 2,152 billion, up 47.9% over the same period. The completion of the M&A of Anco Family Food this year also helped record revenue from the consumer goods segment in the business results for the first 9 months of the year.
With the price of live pigs having stabilized and expected to have positive changes in the last quarter of the year, along with the continuous implementation of very strict disease control procedures for the farm segment to ensure that the health of livestock is always at its best. Nova Consumer is committed to bringing the best products to the market for consumers, as well as ensuring maximum profit margins.
DEG - Investment Fund of the German Development Bank (KfW) is an international financial institution under the German Government, has many activities of funding and consulting for businesses with projects of social significance in: Production of essential goods, Environmental protection (protection of biodiversity and protection of coastlines), Energy (efficient use of energy and development of renewable energy).